WA Trust Act: Should You Opt Out?

Learning Center Article WA Trust BCKGRND (1)

Washington state is implementing a new .58% payroll tax on all W-2 employees who work in-state. You must purchase your own policy prior to November 1, 2021 to opt out of this payroll tax.

If you’re a Washington resident, suddenly everyone is talking about long term care insurance. Back in 2019, the state passed a law to fund a public long term care program through a mandatory payroll tax on every W-2 employee. The only exception is to opt out by purchasing private long term care insurance. Things were relatively quiet until the state amended the law in April 2021 to shorten the time available to purchase private LTCi. Now, one must purchase a policy prior to November 1, 2021 to opt out of the payroll tax. It seems like all of a sudden everyone in Washington is rushing to find an LTC insurance agent.

Why Washington?

Washington has some of the highest long term care costs in the country. One of the reasons may be that it also has one of the most generous Medicaid waiver programs for home health care. Supply meets demand. Owing to a shortage of home health care workers across the country, the cost of care has risen much higher in recent years. Last year, due to the effects of COVID, the increases were magnified further. Medicaid programs are strained in states around the country, but especially in Washington.

 

For more information on the Washington Trust Act, also known as the Washington Cares Fund, visit www.wacaresfund.wa.gov/about-the-wa-cares-fund/. For information on how to opt out, visit www.buddyins.com/wa-enroll

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